A company issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5 (including premium) on allotment and the balance on first call . All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.
Pass necessary journal entries to record the above.

Open in App

Solution

Issued and Applied 10,000 Shares at Rs 10 each at a premium of Rs 3 per share

Application

Rs

5

Allotment

Rs

5

(2+3)

First and Final Call

Rs

3

Rs

13

(10+3) Called-up

Journal

Date

Particulars

L.F.

Debit

Amount

Rs

Credit

Amount

Rs

Bank A/c

Dr.

50,000

To Equity Share Application A/c

50,000

(Share application money received for 10,000 shares at Rs 5 each)

Equity Share Application A/c

Dr.

50,000

To Equity Share capital A/c

50,000

(Share application money transferred to Share Capital Account)

Equity Share Allotment A/c

Dr.

50,000

To Equity Share Capital A/c

20,000

To Securities Premium

30,000

(Share allotment due on 10,000 shares at Rs 5 per share including premium Rs 3)

Bank A/c

Dr.

49,000

Calls-in-Arrears A/c

Dr.

1,000

To Equity Share Allotment A/c

50,000

(All allotment money received except 200 shares)

Equity Share First and Final Call A/c

Dr.

30,000

To Equity Share Capital A/c

30,000

(First and final due on 10,000 shares at Rs 3 per share)

Bank A/c

Dr.

29,100

Calls-in-Arrears A/c

Dr.

900

To Equity Share First and Final Calls A/c

30,000

(First and final call received on all shares except 300 shares)

Equity Share Capital A/c

Dr.

2,000

Securities Premium A/c

Dr.

600

To Share Forfeiture A/c

1,000

To Calls-in-Arrears A/c

1,600

(200 shares forfeited for the non-payment of Rs 8 per share including Rs 3 premium)

Suggest Corrections

Similar questions

Black Stone Ltd. issued 10,000 Equity Shares of ₹ 10 each at a premium of ₹ 3 per share payable ₹ 5 on application, ₹ 5 (including premium) on allotment and the balance on first call. All the shares offered were applied for and allotted. All the money due on allotment was received except on 200 shares. Call was made. All the amount due thereon was received except on 300 shares. Directors forfeited 200 shares on which both allotment and call money were not received.

Pass necessary Journal entries to record the above.

Q. Amrit Ltd. issued 50,000 shares of ₹ 10 each at a premium of ₹ 2 per share payable as ₹ 3 on application, ₹ 4 on allotment (including premium) , ₹ 2 on first call and the remaining on second call.
Applications were received for 75,000 shares and pro rata allotment was made to all the applicants.
All moneys due were received except allotment and first call from Sonu who applied for 1,200 shares. All his shares were forfeited. The forfeited shares were reissued for ₹ 9,600. Final call was not made . Pass necessary Journal entries.

Q. Eastern Company Limited , having an authorised capital of ₹ 10,00,000 divided into shares of ₹ 10 each , issued 50,000 shares at a premium of ₹ 3 per share payable as follows:

On Application	₹ 3 per share;
On Allotment (including premium)	₹ 5 per share;
On first call (due three months after allotment )and the balance as when required.	₹ 3 per share;

Applications were received for 60,000 shares and the directors allotted the shares as follows:
(i) Applicants for 40,000 shares received in full.
(ii) Applicants for 15,000 shares received an allotment of 8,000 shares.
(iii) Applicants for 5,000 shares received 2,000 shares on allotment , excess money being returned.
All amounts due on allotment were received.
The first call was made and the money was received except on 100 shares.
Give journal and cash book entries to record these transactions of the company . Also prepare the Balance Sheet of the company.

Q. Better Prospect Ltd. acquired land costing ₹ 1,00,000 and in payment allotted 1,000 Equity Shares of ₹ 100 each as fully paid. Further, the company issued 4,000 Equity Shares to public . The shares were payable as: ₹ 30 on application ; ₹ 30 on allotment; ₹ 40 on first and final call.
Applications were received for all shares which were allotted . All the money was received except the call on 200 shares.
Pass journal entries and prepare Balance Sheet of the company.

Q. A Co Ltd. was registered with a nominal capital of ₹ 1,00,000 in Equity Shares of ₹ 10 each. It offered to the public 6,000 shares for subscription . The applications were received for 8,000 shares. The Directors rejected applications for 1,000 shares and returned the money received thereon. The application money received on the other 1,000 shares was adjusted towards allotment money. The amount payable on shares was: ₹ 2 per share on application, ₹ 4 per share on allotment and the balance on first call . One shareholders holding 100 shares failed to pay the first call money and as a result his shares were forfeited .
Pass necessary journal entries and prepare Cash Book to record the above transactions.

Join BYJU'S Learning Program

Application	Rs	5
Allotment	Rs	5	(2+3)
First and Final Call	Rs	3
	Rs	13	(10+3) Called-up

Journal
Date	Particulars		L.F.	Debit Amount Rs	Credit Amount Rs

	Bank A/c	Dr.		50,000
	To Equity Share Application A/c				50,000
	(Share application money received for 10,000 shares at Rs 5 each)

	Equity Share Application A/c	Dr.		50,000
	To Equity Share capital A/c				50,000
	(Share application money transferred to Share Capital Account)

	Equity Share Allotment A/c	Dr.		50,000
	To Equity Share Capital A/c				20,000
	To Securities Premium				30,000
	(Share allotment due on 10,000 shares at Rs 5 per share including premium Rs 3)

	Bank A/c	Dr.		49,000
	Calls-in-Arrears A/c	Dr.		1,000
	To Equity Share Allotment A/c				50,000
	(All allotment money received except 200 shares)

	Equity Share First and Final Call A/c	Dr.		30,000
	To Equity Share Capital A/c				30,000
	(First and final due on 10,000 shares at Rs 3 per share)

	Bank A/c	Dr.		29,100
	Calls-in-Arrears A/c	Dr.		900
	To Equity Share First and Final Calls A/c				30,000
	(First and final call received on all shares except 300 shares)

	Equity Share Capital A/c	Dr.		2,000
	Securities Premium A/c	Dr.		600
	To Share Forfeiture A/c				1,000
	To Calls-in-Arrears A/c				1,600
	(200 shares forfeited for the non-payment of Rs 8 per share including Rs 3 premium)